Develop a logistic model to reduce transportation costs


A logistic model to service all types of entities in the cash supply chain by using the same dedicated vehicles.

1. Problem Statement

  • Individual vehicles are used to service Branches, ATMs and Retail Customers, this leads to inefficient vehicle movement as multiple vehicles stop at locations in close proximity;
  • A transportation model that uses a single vehicle to service Branches, ATMs and Retail Customers must be investigated as it is expected to reduce the transportation costs in the supply chain.
  • A costing model to calculate the costs for the various CIT servicing types is required.

2. Solution Approach

  • Identify potential cost saving locations based on:
  • Transportation costs;
  • Distance to service centre;
  • Transactional volumes;
  • Density (number of entities in the area);
  • Build a simulation model to represent logistics (using a dedicated vehicle);
  • Feasibility study to compare the current logistics model (scheduled services) to the future logistics model (dedicated vehicle);

3. Project Outcomes

  • Defined a logistics model to service cash centres, branches and ATMs with the use of dedicated vehicles;
  • Costing model for CIT when types of services are combined;
  • Engagement with multiple service providers to obtain best tariffs;
  • Requirement to operationalise the logistics model per area (vehicles, sorting capacity etc.)
  • Operational targets (time, sorting, kilometers, fixed and variable costs etc.)
  • Up to 30% saving on transportation cost (depending on area configuration) to provide the same service level;